Issued by: Government Communications (GCIS)
MINISTER Z. PALLO JORDAN'S SPEECH AT THE LAUNCH OF TOURISM ECONOMIC IMPACT STUDY DONE BY WTTC,
MELVILLE. 8 SEPTEMBER 1998.
Thank You Master of Ceremonies,
Mr Lipman,
Honoured guests,
Ladies and gentlemen of the media,
We have for the past three years said that tourism probably has the best potential of all economic sectors in the country to contribute to sustainable economic growth. We identified the reasons for this as being:
The real comparative advantage enjoys because it capitalises on the natural and cultural diversity of the country and offers a product that is in high demand in the international market. World-wide more than R500 billion per annum is spent on travel and tourism.
In South Africa tourism has demonstrated consistent growth over the past four years. After the democratic elections, new benchmarks were set. During 1995, a growth of 22% in foreign tourism was experienced, with a 52% growth from lucrative overseas markets, and a 12% growth from the African continent. The figure for that year was slightly distorted by the Rugby World Cup but the performance of the sector has been good since then. In 1997 we registered a 19.3% growth in our European market; a23% growth in our North American market; 38.1% growth in our South American market; a 10.8% growth in our Australasian market and a 7.3% growth in our African market.
No other sector of the economy has equalled this performance! Travel and tourism has no doubt been one of the most consistent and highest growth sectors in the economy.
This study by the World Travel and Tourism Council highlights some very important issues that are crucial to the Government's vision for tourism as a key stimulant of the GEAR strategy. This assessment is based on the ability of the sector to attract substantial private sector investment; its ability to stimulate SMME development; the labour intensive nature of the sector; its potential to act as a catalyst for major infrastructure investment; and its value as a non-primary export earner.
This study focuses not only on the direct economic impact of tourism on the country, but also what it calls "the flow through" effect on related industries, such as retail, manufacturing, food processing, construction, etc.
I am particularly excited about tourism's job creation potential, ranging across the employment spectrum from white to blue collar. This study indicates that these will be highly accessible jobs, especially for women, for the less skilled and for new entrants to the job market. It further indicates that the majority will be in small and medium-sized enterprises, both in the city centres and in rural areas.
There is a direct correlation between job creation through tourism and the numbers of tourists travelling to or within a country. We welcomed something in the region of 1.4 million visitors from overseas during 1997. The total number of foreign visitors, including those from the African continent, exceeded 5.4 million. By capturing a growing portion of the global market tourism can contribute directly addressing one of our country's most pressing problems, joblessness.
Tourism is a multi industry sector which necessarily relies on products, goods and services from a wide number of other industries, including accommodation, transport, catering, retail, banking and fuel. It places demands on services such as cleaning, recreation, entertainment and health. It spawns opportunity in manufacturing, construction, food production - from the farmer through the processor to the purveyor. The multiplier effect is consequently very high.
Tourism relies on personal services and as a result is labour intensive. The wide variety of skills and abilities it calls for ranges from airline pilots and tour operators, to receptionists, waiters, cleaners and porters.
As we approach the Presidential Jobs Summit many of the findings in this study will prove invaluable in identifying the gaps and the opportunities to maximise job creation through tourism.
A task team, coordinated by the Department of Environmental Affairs and Tourism, which includes SATOUR, the Tourism Business Council of South Africa, the Hospitality Industry Training Board, the Industrial Development Corporation and Grant, Thorton, Kessel Feinstein, has compiled a submission as the tourism sector's input to the summit. Government, business and labour are agreed on the importance of this summit.
As a department, the DEA & T is proposing a range of tourism initiatives. Among them are:
In response to the challenges posed by tourism, my Department has finalised implementation strategies for a collaborative action programme based on the White Paper on Tourism and our medium term development plan for 1998 to the year 2000.
I am in a position, this morning, also to announce the launch of a Collaborative Tourism Action process 9Cluster process) which will provide the framework for taking tourism into the next millennium. The Cluster consortium, which was appointed by a NEDLAC leadership group to manage the process, will be coordinated by Consultants. Its purpose is to combine rigorous analytical research with collaborative human processes to develop a shared vision and strategy for tourism development. It is aimed at achieving collective action among the key stakeholders - the private sector, government and labour - to enhance tourism marketing, investment, skills and infrastructure development. This we hope to do through public-private sector partnerships that can galvanise the resources and energies of our society.
It is our hope that players in transport, accommodation, food and catering - all of which are directly involved in tourism - as well as other sectors such as manufacturing, banking, retail and construction - which are indirectly linked to tourism industry which could transform it into one of the most dynamic and successful in the national economy.
Mr Lipman,
While I have seen some of your preliminary findings, I am extremely interested in hearing your final results this morning. I am certain they will confirm my optimism about the prospects of South Africa's Tourism Sector.
Thank you.